Several states are being awarded extra money from the federal government in an attempt to tackle SNAP benefit fraud.
The U.S. Department of Agriculture has awarded a range of grants that can be spent on fraud technology, prevention and education as numerous states deal with tens of thousands of lost Supplemental Nutrition Assistance Program (SNAP) claims.
SNAP is administered to recipients through electronic benefit transfer (EBT) cards, similar to debit cards, which are loaded with money each month to use in participating stores across the country. Like regular debit or credit cards, they are subject to scams such as cloning, phishing or skimming. During the second quarter of 2024, the USDA reported 67,496 approved stolen benefit claims, amounting to more than $32 million in payments needing to be replaced.
Now, the USDA has awarded funding grants to ten states, which will be used by human services and health and family departments to help tackle benefit fraud. They are:
- Illinois Department of Human Services
- Florida Department of Children and Families
- Kentucky Cabinet for Health and Family Services
- Maine Department of Health and Human Services
- Michigan Health and Human Services
- Minnesota Department of Human Services
- Mississippi Department of Human Services
- Montana Department of Public Health and Human Services
- Texas of Health and Human Services Commission
- West Virginia Department of Human Services
Overall, some $4.9 million in grants has been awarded across all 10 states. Not every state has been granted the same amount.
Awarded states are permitted to use the funding for different reasons. For example, in Minnesota the funds will be used to implement card technology that will protect benefit recipients, whereas in Kentucky the funds will be put toward educating SNAP recipients, retailers and local office on fraud risks and prevention.
Other funding awards will be used on media campaigns to raise awareness of theft tactics, and staff training on preventing fraud during the application stages.
The funds cannot be used to reimburse recipients who have had their benefits stolen, which comes from separate funding. Under the current federal law, states are required to replace stolen benefits.
“USDA and the Biden-Harris administration remain unwavering in their dedication to strengthening SNAP, protecting vulnerable households, and combating fraud,” Cindy Long, deputy under secretary for USDA Food, Nutrition, and Consumer Services, said in a statement. “These awards are critical to providing states the resources they need to deliver program benefits in a manner that best meets the needs of the people they serve while maximizing program integrity.”
